What Is FD Calculator?
An FD (Fixed Deposit) calculator is an essential financial tool that helps you determine the interest earned and maturity amount for your fixed deposit investments. Whether you're planning to invest in a bank FD, corporate FD, or any other fixed deposit scheme, this calculator provides accurate estimates of your returns.
Our FD calculator uses compound interest formulas to compute interest earnings, maturity amounts, and total returns. This helps you make informed investment decisions and compare different FD options to maximize your returns.
FD Calculation Formula
The FD calculator uses compound interest formulas to determine interest earnings and maturity amounts. These formulas are universally accepted and used by banks and financial institutions worldwide.
Compound Interest Formula
A = P × (1 + r/n)^(n×t)
Where: A = Maturity Amount, P = Principal, r = Annual Interest Rate, n = Compounding Frequency, t = Time in Years
Interest Earned Formula
Interest Earned = Maturity Amount - Principal Amount
This gives you the total interest earned over the investment period
Effective Annual Rate (EAR)
EAR = (1 + r/n)^n - 1
Shows the actual annual return considering compounding frequency
Types of Fixed Deposits
🏦 Bank FDs
Traditional fixed deposits offered by banks with guaranteed returns and high safety. Interest rates typically range from 3-7% depending on tenure.
🏢 Corporate FDs
Fixed deposits offered by companies with higher interest rates than bank FDs. Higher returns but slightly higher risk compared to bank FDs.
📈 Senior Citizen FDs
Special FD schemes for senior citizens with higher interest rates (0.25-0.5% extra). Designed to provide better returns for retirement planning.
💰 Tax-Saving FDs
Fixed deposits with tax benefits under Section 80C. Lock-in period of 5 years with tax deduction benefits up to ₹1.5 lakh annually.
🔄 Flexi FDs
Flexible fixed deposits that allow partial withdrawals without breaking the entire deposit. Combines liquidity with higher returns.
📊 Cumulative FDs
Fixed deposits where interest is reinvested and paid at maturity. Provides higher returns through compound interest effect.
Why Use Our FD Calculator?
- Accurate Calculations: Uses precise compound interest formulas for exact maturity amounts
- Instant Results: Get your FD calculation immediately without complex manual calculations
- Yearly Breakdown: See year-by-year growth of your investment with detailed analysis
- Multiple Scenarios: Compare different FD options, tenures, and interest rates
- Compound Interest: Understand the power of compounding on your investment growth
- Investment Planning: Plan your investments better with accurate return projections
- Mobile Friendly: Works perfectly on all devices - access your FD calculator anywhere
- Completely Free: No registration, no download, no hidden charges
FD Calculator Example
Sample Calculation
Input Values:
- • Principal Amount: ₹100,000
- • Interest Rate: 6.5% per annum
- • Tenure: 5 years
- • Compounding: Quarterly
Results:
- • Interest Earned: ₹37,689
- • Maturity Amount: ₹137,689
- • Effective Annual Rate: 6.66%
This example shows how a ₹100,000 investment at 6.5% interest for 5 years with quarterly compounding results in ₹37,689 interest earned and a maturity amount of ₹137,689. The effective annual rate is 6.66% due to compounding.
FD Investment Benefits
For Investors
- Guaranteed Returns: Fixed interest rates ensure predictable income
- Capital Safety: Low-risk investment with principal protection
- Regular Income: Option to receive interest payments periodically
- Tax Benefits: Tax-saving FDs offer deduction under Section 80C
Investment Planning
- Goal Planning: Plan for specific financial goals with fixed returns
- Portfolio Diversification: Balance high-risk investments with stable FDs
- Retirement Planning: Build a steady income stream for retirement
- Emergency Fund: Create a safe emergency fund with reasonable returns
Frequently Asked Questions
What is the difference between simple and compound interest in FD?
Simple interest is calculated only on the principal amount, while compound interest is calculated on both principal and accumulated interest. Most FDs use compound interest, which provides higher returns over time.
How does compounding frequency affect FD returns?
Higher compounding frequency (monthly/quarterly) results in higher returns compared to annual compounding. This is because interest is reinvested more frequently, creating a compounding effect.
Are FD returns taxable?
Yes, FD interest is taxable as per your income tax slab. However, tax-saving FDs offer deduction under Section 80C. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens).
Can I withdraw my FD before maturity?
Yes, but premature withdrawal usually attracts penalties and lower interest rates. Some banks offer flexi FDs that allow partial withdrawals without breaking the entire deposit.
What is the minimum amount for FD investment?
Minimum FD amounts vary by bank, typically ranging from ₹1,000 to ₹10,000. Some banks offer zero-balance FDs for small amounts. Check with your preferred bank for specific requirements.